Funding the Next Generation Margaret Brodkin and Ed

Funding the Next Generation Margaret Brodkin and Ed Harrington Los Angeles January 8, 2019

Budget Rules • Governmental Accounting—rules clear • Rules set by GASB • Implementation by GFOA • Audited to insure compliance • Governmental Budgeting—no rules • Reporting requirements by State Controller • County Budget Guide (sco. ca. gov) • NACSLB (National Advisory Committee on State and Local Budgeting) best practices • GFOA/CSMFO Awards programs

Budget Timeline October- December Budget Instructions January-March Departmental preparations, hearings June Board of Supervisors April-May budget Office/Auditor. Controller

Budget Terminology • Proposed/Recommended Budget • Before year starts • Adopted Budget/Appropriations Ordinance • Start of year • Final Budget • End of year • Revenues/Sources; Expenses/Uses

Funds (1 of 2) • Government Accounting is set up in funds • Governmental Funds: • General Fund-basic government • Special Revenue- Specific Revenues that are legally restricted for a specific purpose • Capital Projects • Debt Service

Funds (2 of 2) • Proprietary Funds • Enterprise—business type activities • Airport, water, hospital • Internal Service • IT, Risk Management, Motor pool • Fiduciary Funds—held for others • Pension, employee benefits

Charter vs. General Law • Los Angeles County • Los Angeles City • Orange County • Santa Ana Charter • San Diego City Charter • San Bernardino • Rialto • Ventura Charter General Law

Budgets-just like your checkbook • +Money from prior year or reserves • +Current year revenues • - Current year expenses • -Remaining fund balance/reserves

San Bernardino Budget Summary

Fund Balances and Reserves

• Purpose • Protect against risk • Cash Flow Fund Balance and Reserves • Typical • Basic reserves 2 -3 months or 15 -25% of appropriations • Higher in smaller communities, fewer taxes, fewer customers, etc. =higher risk • If large, may indicate too conservative budgeting • Rialto 50% reserve • San Bernardino 15. 7%- target 20% • Watch for multiple reserves

San Bernardino (General Fund $3. 3 B)

San Bernardino Expanded Reserves

Orange County Reserves (total General fund $3. 4 B)

Orange County Revenue Sources

Current Year Revenues Opportunities

Ventura County Revenue Sources

San Bernardino Revenue Sources

Los Angeles County Funding Summary

Los Angeles County Local Revenues

San Diego Revenue Summary

Orange County Tax Detail

San Bernardino Tax Detail

Santa Ana Tax Detail

San Diego Tax Detail

Rialto –Tax/ Revenue Detail

Rialto Revenue Growth

Los Angeles City Revenues

Los Angeles City Tax Revenue

• Property Taxes – set by Prop 1 Current Year Revenues • Excess ERAF (Educational Revenue Augmentation Fund) • Parcel tax can be passed by voters – Special tax • 2/3 rds or Upland rule

Ventura

Sales Tax • Los Angeles County • Los Angeles City • Orange County • Santa Ana 9. 5% 9. 5 7. 75 • San Diego City • San Bernardino • Rialto • Ventura 7. 75 7. 25

San Bernardino

Property Transfer Tax per $1, 000 – County rate set by state law • Los Angeles County (unincorporated) • Los Angeles City ($215 M) $1. 10 • Orange County (unincorporated) ($27 M) • Santa Ana ($850 K) $1. 10 $. 55 City/. 55 County • San Diego City ($11 M) $. 55 City/. 55 County • San Bernardino (unincorporated) ($10 M) • Rialto ($240 K) $1. 10 $. 55 City/. 55 County • Ventura (unincorporated) ($6. 1 M) $1. 10 $4. 50 City + 1. 10 Cnty • Berkeley $15. 00/1. 10 Pomona $2. 20/1. 10 San Mateo $5. 00/$1. 10 • Richmond tiered – top rate $30. 00 (3%) over $10 M • San Francisco tiered – top rate $30. 00 over $25 M ($228 M)

San Bernardino Property Transfer Tax ($1. 10/ $1000 or ½ in cities)

San Diego

Utility Users Tax (4 counties, 157 Cities, 54% of state population) • Los Angeles County ($52 M) • Los Angeles City ($640 M) • Orange County • Santa Ana ($25 M) 4. 5% 9 -10% 5. 5% • San Diego City • San Bernardino • Rialto ($14 M-27% of GF) • Ventura 8% -

Utility Users Tax Rates

Hotel Tax (Transient Occupancy Tax) • Los Angeles County • Los Angeles City • Orange County • Santa Ana 12% 14% ? 11% • San Diego City • San Bernardino • Rialto • Ventura 10. 5% 7% 9% 8%

Expenditures – Uses of Funds Opportunities

Orange County Total Budget Appropriations

Orange County General Fund Appropriations

Orange County Discretionary Revenue

Orange Net County Cost

Orange County Net County Costs

Ventura County Spending Summary

Ventura General Fund Spending Summary

San Bernardino Spending Summary

San Bernardino Discretionary Summary

San Bernardino Net County Cost

Los Angeles County Budget Summary

Los Angeles County Spending Summary

Los Angeles County Net County Cost

Los Angeles County Mandated vs. Discretionary Costs

Los Angeles City Unrestricted Revenue Summary

Los Angeles City – Use of Unrestricted Revenue

Santa Ana Budget Spending Summary • 2018 -19 budget • Police $130 • Fire $52 • Park/Rec $21 • Other $61 • Total $265 • Revenues up 15. 7% from 2018 • Cannabis $10 • Prior Year $10

Dedicated Children and Youth Spending • Target how local funds are spent—not all funds • Set-aside a portion of total budget for kids • Cut a particular program and use funds for new programs for kids • Juvenile Probation

Ventura. Children Health Spending

Ventura WIC

Los Angeles County Children and Family Services Summary

Los Angeles County Probation Summary

Los Angeles County Juvenile Probation Info

Ventura County Probation Department Juvenile spending $30 M, county share $18 M

Ventura Juvenile Arrest Trends

Ventura County Juvenile Justice Plan- April 2017

Orange County Probation • In FY 2015 -16, 100 vacant positions were deleted in an effort to offset position needs in the County that were available due to a decrease in the juvenile detention population.

Orange County Probation Beds • • Juvenile Hall 434 Joplin Youth Center 64 Youth Guidance Center (Substance abuse) 80 Youth Leadership Academy 120 • Total Beds 698

Santa Ana Cannabis Spending

Santa Ana Youth Spending Detail

Good Budget Examples • Rialto -0 verall good budget presentation and discussion of revenues, reserves, risks, etc. • Ventura – good budget instruction procedural document • San Bernardino – good county overview and explanations of things like realignment in discretionary fund section • Orange County – good budget introduction— lots of good information • Biggest Problem—almost no program budgeting or meaningful performance data

Messaging This Moment A handbook for progressive communicators By Anat Shenker-Osario

Liberals start with problem, then solution, then call for action Shared Values —not problems People have 99 problems already – they don’t want to hear more Martin Luther King didn’t say “I have a problem” Start with values “Most of us seek to treat others the way we want to be treated” not “our treatment of undocumented immigrants is horrendous”

You lose your keys—you don’t lose your job—someone takes your job away. Offer clear villains and heroes Don’t say “the climate is changing”. Say “Corporations make profits by damaging our climate”. If no one caused this problem, where will you look to fix it?

Create Something Good —don’t merely reduce the bad. Describe what you seek-–not just what you oppose A “no” without a “yes” sounds like politics as usual. Don’t say “mitigate climate change” Say “Protect our children’s health” Don’t repeat accusations: Don’t say “Immigrants are not “criminal aliens”. Say “Immigrant Americans move here for the promise of freedom and opportunity. That’s a good thing—so let’s make it work. ”

Don’t say Focus on Outcomes— not process Say Don’t say Say • Don’t say “Medicaid is being decimated by moving block grants to the states” • Say “People need to see doctors when they are ill so they can get healthy again. This change will deny treatment to the sick. ” • Don’t say: “We propose raising sales taxes to reduce the number of families on the waiting list for childcare”

We usually try not to offend. Which means no one cares. Even our supporters don’t know what to do with blah. Alienate the opposition without provoking them. Make your opponents outliers. They will never be with you anyway. Don’t say “improving wages will grow our economy” 15% of US voters are opposed to: • Every working parent should be paid enough to set their kids off for a bright future Use that opposition against them while galvanizing your supporters

Troy Library • https: //www. youtube. com/watch? v=nw 3 z. NNO 5 g. X 0

Get less Modest 1 Don’t say “we strive to accomplish” 2 Say “ We achieve”, “We create”

Start with shared values—”No matter our differences, most of us want pretty similar things—to get through the workday and have time with family and friends”. To Communicate Then introduce the problem—But for some people, the most basic things—like using public restrooms— have been turned into a daily struggle because they don’t look or feel like a generic “man” or “woman”. And offer solutions—all of us need a secure, clean and comfortable place to go to the bathroom—no matter what we look like or how we identify. So let’s make all single user restrooms gender neutral.

Questions • Ed Harrington • edhrr@cs. com